Question Details

Detailed explanation and options for the selected question.

If you withdraw Rs. 1,00,000 in cash from your demand deposit account in India, what is the immediate effect on aggregate money supply?

A. It decreases by Rs. 1,00,000
B. It increases by Rs. 1,00,000
C. It increases by more than Rs. 1,00,000
D. It remains unchanged

Explanation: